DAP has received complaints of the Federal government’s investment funds having an undue influence not only on stock prices of certain companies but also on Bursa Malaysia due to the huge amount of investment funds in its disposals. There must be full accountability and transparency of the 8 Federal government’s investment funds totalling RM 1,270 billion to avoid any insider trading, misappropritions and abuse of public trust. (See below)
| Custodians of billions | TOTAL FUNDS/ ASSETS UNDER MANAGEMENT (BIL) |
| Employees Provident Fund | RM597.82 |
| Permodalan Nasional Bhd | RM237* |
| Khazanah Nasional Bhd | RM134.9 |
| Kumpulan Wang Amanah Persaraan | RM96.33 |
| Lembaga Tabung Haji | RM84.03* |
| Lembaga Tabung Angkatan Tentera | RM72.7* |
| 1Malaysia Development Bhd | RM44.66 |
| Ekuiti Nasional Bhd | RM2.64 | TOTAL | RM1,270 |
Note : * financial year 2012, ^ financial year 2010
Apart from ensuring there is no insider trading amongst the members of the Investment Fund’s Investment Panel, there is also a need for closer scrutiny of the performance of these funds and asset management companies because so much public money is involved.
The two biggest funds are the Employees Provident Fund, which had total assets of RM597.82 billion as at Dec 31, 2013, and Permodalan Nasional Bhd, with about RM237 billion at the end of 2012 own substantial stakes in the largest companies on Bursa Malaysia. What is of greater concern is Khazanah Nasional Bhd because of its ownership of the financially troubled Malaysian Airline System Bhd. MAS had accumulated losses to the tune of RM8.53 billion as at March 31, 2013.
Another Federal government’s investment fund that has attracted controversy is the 1Malaysian Development Bhd due to its huge billion ringgit debt in just four years of existence and difficulty in submitting its financial returns on time, leading to a change of its accountant and auditors.
Due to the huge RM1,270 billion of public money involved that belongs to 28 million Malaysians, it is imperative that the public be fully informed of its management that passes the most stringent scrutiny so that there is no hint of suspicion of any irregularity, impropriety or insider trading. For this reason, DAP calls on the 8 Federal government investment funds to be subject to full and regular parliamentary oversight, such as the Public Accounts Committee, to ensure that its performance not only maximizes financial return but also optimizes national interest instead of private benefit of cronies.